How to Get the Most Out of Pegadaian


When you hear about the state pawnshop company, PT Pegadaian, what comes through your mind? As a state-owned company that has been around since the colonial Dutch era, Pegadaian was established as an official entity to extend credit in the form of cash by way of pawning or giving a valuable asset as guarantee.

When something unexpected happens, people who do not have emergency funds often find it hard to survive without letting go of their assets in order to get quick cash. This is not an ideal way, because there will be interest to pay and there is a possibility that the hard-earned assets will be valued lower than the market price.

Nowadays, PT Pegadaian has done a lot of improvements to keep up with current demand, including opening more branches in shopping centers and speeding up its services. If you are facing dead end and have to pawn your stuff, is there a way to maximize this facility and minimize the possibility of loss? Check out some of these little-known facts about Pegadaian.

1. With late payment comes great “rental fees” of between 0.75% and 1.2%

By giving loans starting from Rp 50,000 up to tens of millions of rupiah per 15 days, Pegadaian accommodates a wide range of customers. “After half month, if the customer cannot redeem his or her item, he or she must extend the loan period,” said Dian Novita Sari, a Gold Appraiser staff at PT Pegadaian. The customer simply has to pay a rental fee of 0.75%-1.2%  of the total loan, plus administration fee of between Rp 2,000 and Rp 100,000. After the collateral is received, the loan money can be obtained on the same day.  

Each pawnshop determines the type of goods that are acceptable as collateral, but the most common ones are gold and car. Electronic items such as mobile phones and laptops can also be accepted if the brand is popular and the specifications are not too outdated. For gold pawn, Pegadaian is able to do their own valuation and the loan will be immediately granted. Meanwhile, for car pawn, the pawnshop requires check test by the DMV (Samsat) – which would only take less than two hours.    

2. Pegadaian has other services besides pawnshop

“Most people think if somebody comes to Pegadaian means the person is in financial trouble, but actually Pegadaian sells gold and provides business loans, too,” Dian said.

Even though the name is Pegadaian – which literally means “pawnshop” in Indonesian – it does not mean that this state-owned company is only focusing at luxury items pawning. Customers can even buy gold with instalments. However, this means the buyer would pay based on the gold price set by  Antam, plus the margin price set by Pegadaian.

According to Dian, the company is also passing on knowledge about gold in some women gatherings – for example in social gatherings known as “ arisan” – and local street food vendors. “Believe it or not, through the socialization done so far, a customer who owns a small food stall can afford an auctioned necklace that cost Rp 40 millions!” she said.

3. Do your best to pay off the debt as soon as possible

Although there is a limit of 15 days, customers need not to wait until the due date to redeem their pawned items. “If you pawn something in the morning, you can instantly redeem it in the evening,” said Dian. As previously mentioned, the rental and administration fees will be charged if a customer wants to extend his or her loan cycle.

However, if the customer decides not to extend, Pegadaian will have the right to put the pawned item for auction. According to Dian, this clause has caused several disputes between customers and the pawnshop. Normally, the pawnshop will try to contact the customer and give a grace period of one week after the due date. Nevertheless, many customers do not take any actions until their items are finally sold. In case of dispute, there is a clause in the Pawn Agreement Letter (Surat Bukti Gadai) which can be legally used to back-up Pegadaian.  

“Sometimes we give the proceeds from auctions back to the customers,” said Dian, who felt bad when the company had to auction the collaterals. She also reminds people to read the Pawn Agreement Letter carefully before agreeing to the terms and conditions.   

Read also: Inheritance Money: How to Maximize It

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